Correlation Between Uzinexport and Bermas SA

Can any of the company-specific risk be diversified away by investing in both Uzinexport and Bermas SA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Uzinexport and Bermas SA into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Uzinexport SA and Bermas SA, you can compare the effects of market volatilities on Uzinexport and Bermas SA and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Uzinexport with a short position of Bermas SA. Check out your portfolio center. Please also check ongoing floating volatility patterns of Uzinexport and Bermas SA.

Diversification Opportunities for Uzinexport and Bermas SA

0.0

Correlation Coefficient

Uzinexport  Bermas SA

Pay attention - limited upside

The 3 months correlation between Uzinexport and Bermas is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Uzinexport SA and Bermas SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bermas SA and Uzinexport is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Uzinexport SA are associated (or correlated) with Bermas SA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bermas SA has no effect on the direction of Uzinexport i.e., Uzinexport and Bermas SA go up and down completely randomly.

Pair Corralation between Uzinexport and Bermas SA

Assuming the 90 days trading horizon Uzinexport SA is expected to under-perform the Bermas SA. In addition to that, Uzinexport is 1.43 times more volatile than Bermas SA. It trades about -0.04 of its total potential returns per unit of risk. Bermas SA is currently generating about 0.03 per unit of volatility. If you would invest  292.00  in Bermas SA on September 5, 2024 and sell it today you would earn a total of  8.00  from holding Bermas SA or generate 2.74% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

Uzinexport SA  vs.  Bermas SA

Uzinexport SA

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Uzinexport SA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest unfluctuating performance, the Stock's basic indicators remain healthy and the recent disarray on Wall Street may also be a sign of long period gains for the firm investors.

Bermas SA

Risk-Adjusted Performance

2 of 100

Weak

Compared to the overall equity markets, risk-adjusted returns on investments in Bermas SA are ranked lower than 2 (%) of all global equities and portfolios over the last 90 days. In spite of very healthy primary indicators, Bermas SA is not utilizing all of its potentials. The recent stock price disarray, may contribute to short-term losses for the investors.

Pair Trading with Uzinexport and Bermas SA

The main advantage of trading using opposite Uzinexport and Bermas SA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Uzinexport position performs unexpectedly, Bermas SA can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Bermas SA will offset losses from the drop in Bermas SA's long position.

The idea behind Uzinexport SA and Bermas SA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.